Every Contract a Trades Business Needs in the UK (2026)

Last updated: February 2025

Legal Requirements for a Trades Business

UK tradespeople must comply with the Consumer Rights Act 2015 for domestic work (services performed with reasonable care and skill, within a reasonable time, at a reasonable price). Certain trades require specific certifications: Gas Safe registration for gas work (Gas Safety Regulations 1998), Part P certification for electrical work (Building Regulations Part P), and FGAS certification for air conditioning (F-Gas Regulation). The Consumer Contracts Regulations 2013 apply to work arranged remotely. CIS rules apply when working as a subcontractor for construction companies. The Supply of Goods and Services Act 1982 implies quality terms into contracts.

Essential Contracts

Quoted Work Agreement

Written quote with clear scope, fixed or estimated price, payment terms, start date, and completion timeline — essential under the Consumer Rights Act 2015

Terms and Conditions of Service

Standard terms covering liability, warranty periods, materials, variations, access requirements, and dispute resolution for all jobs

Subcontractor Agreement

Contract for work done under another contractor, covering CIS compliance, payment terms, insurance requirements, and scope of work

Public Liability Insurance Certificate

Evidence of public liability coverage — essential for all trades work and required by most commercial and domestic clients

Recommended Contracts

Warranty Certificate

Documents the warranty period and terms for completed work, including what is covered, exclusions, and how to make a claim

Variation Order Form

Formal documentation for changes to the original quoted scope, preventing disputes about additional charges for extra work requested

Apprenticeship Agreement

Required under the Apprenticeships, Skills, Children and Learning Act 2009 for any apprentices employed in the business

Common Legal Risks for a Trades Business

  • Disputes over pricing without a clear written quote distinguishing between fixed price and estimated work
  • Consumer claims under the Consumer Rights Act 2015 for work not performed with reasonable care and skill
  • Criminal prosecution for performing notifiable work (gas, electrical) without proper certification
  • CIS deductions from subcontract payments without proper verification and documentation
  • Liability for defective materials used in work without supplier warranty documentation

Industry-Specific Notes

Trades businesses should be members of relevant trade bodies (Gas Safe, NICEIC, NAPIT, FMB, CIPHE) for credibility and access to dispute resolution. Many tradespeople are sole traders with unlimited personal liability — contracts should include liability caps and require adequate insurance. TrustMark registration is required for work under the government's Green Deal and is recommended for consumer confidence. Always provide a written quote rather than a verbal estimate to avoid disputes.

FAQ

Does a tradesperson need a written contract for every job?

While not legally required for every job, a written contract (even a simple quoted work agreement) is strongly recommended. Under the Consumer Rights Act 2015, the tradesperson must perform the service with reasonable care and skill — a written agreement documents what was agreed and protects both parties. For jobs over a few hundred pounds, a written quote with scope, price, timescale, and payment terms is essential. For larger projects, a formal contract with variation procedures and staged payments is advised.

What warranty obligations does a tradesperson have for completed work?

Under the Consumer Rights Act 2015, consumers have the right to require the tradesperson to redo inadequate work within a reasonable time and without significant inconvenience. If the work cannot be redone satisfactorily, the consumer is entitled to a price reduction. The limitation period for claims is 6 years from completion (or 5 years in Scotland). Many trade bodies require members to offer specific warranty periods (e.g., 12 months). A clear warranty certificate sets expectations and demonstrates professionalism.

What happens if a tradesperson does notifiable work without proper certification?

Performing notifiable work without proper certification is a criminal offence. For gas work without Gas Safe registration, prosecution can result in unlimited fines and up to 2 years imprisonment under the Gas Safety (Installation and Use) Regulations 1998. For electrical work without Part P compliance, local authorities can require the work to be inspected or redone at the tradesperson's expense. The work will not receive a Building Regulations compliance certificate, which can cause problems when the property is sold.

Related Business Types

Construction Company

Sole Trader

B2C Service Business

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This is guidance, not legal advice. Consult a solicitor for complex matters.

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